Demarco and Janine Jackson have been married for $20$ years and have four children who qualify as thelr dependents

$($Damarcus$,$ Jasmine, Michael, and Candice$).$ The Jacksons file a joint tax return. The couple recelved salary income of

$$92,500$ and qualified business income of $$22,500$ from an investment in a partnership, and they sold their home this

year. They initially purchased the home three years ago for $$262,500$ and they sold it for $$312,500.$ The gain on the sale

qualified for the exclusion from the sale of a principal residence. The Jacksons incurred $$19,000$ of itemized deductions,

and they had $$4,000$ withheld from thelr paychecks for federal taxes. They are also allowed to claim a child tax credit for

each of their children. However, because Candice was $18$ years of age at year end, the Jacksons may claim a child tax

credit for other qualifying dependents for Candice. $($Use the tax rate schedules.$)$

Comprehensive Problem $4-57$ Part$-$a $($Algo$)$

a$.$ What is the Jacksons' taxable Income, and what is their tax IIability or $($refund$)?$

Note: Do not round Intermedlate calculatlons.

Answer is complete but not entirely correct.